Repository: UIHistories Project: Board of Trustees Minutes - 1922 [PAGE 26]

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BOARD OF TRUSTEES

[July 26,

All expense connected with the application for said patent or patents or for renewals of such patent or patents or for improvements thereon shall be paid by the party of the second part. 2. The University shall execute to the party of the second part a license or licenses for the use of said patent and patents under the following terms: (a) Such license shall provide for the exclusive use of the patent or patents by the licensee during the existence or life thereof, for which the party of the second part shall pay to the party of the first part as a royalty for the exclusive use of said patent or patents the sum of cents per ton for each and every ton of coke manufactured or produced by the use of such process. The party of the second part shall not be required to pay any royalty until he shall have first been reimbursed by the earnings from the use of said patent or patents for the moneys expended by him in the prosecution of the investigation and perfection of said process, amounting to the sum of $16,193.62 plus the amount of money which shall be expended in the commercial development of said process, but provided further that if the party of the second part shall not have reimbursed himself for and on account of ail of such expenditures within eight years from the date hereof that then and in that event the payment of royalties to the party of the first part shall begin; and provided further, that if the party of the second part shall have been reimbursed as provided above for the amount thereof in a period of less than eight years then such royalties to the party of the first part shall begin. Reports of royalty earnings shall be made in writing to the University by the party of the second part on the first days of January and July of each year. When requested by the University such report shall be under oath. Royalties for the six months covered by the report shall be payable within fifteen days after the date thereof. The party of the second part shall keep full and accurate book accounts of all expenditures made by him in the perfection and commercial development of said process and the earnings arising from its use. Such book accounts shall be open to inspection by any expert accountant employed by the University at any time the University may desire such inspection. (b) The party of the second part shall exploit said inventive process with diligence. When the time arrives for the payment of royalties by the party of the second part to the University as provided in subsection (a) hereof there shall be paid by the party of the second part to the University the sum of Ten Thousand Dollars per annum in equal semi-annual payments of Five Thousand Dollars each, which shall be considered as the minimum royalty to be paid hereunder and which sum shall be received by the University for and on account of the total amount of royalties to be paid and if said minimum royalty shall not be so paid then at the option of the University and by a declaration of said option in writing to the party of the second part said license may become a non-exclusive license, by which is meant that the University may grant licenses to others, provided however, that such licenses shall be upon terms not more favorable than those granted hereunder to the party of the second part. (c) At any time the party of the second part may surrender the license agreed to be granted hereunder to the University, in which event all rights and obligations of all the parties hereto and hereunder shall cease. (d) The party of the second part shall have the right to use the license to be granted hereunder in the operation of any corporation or company organized by him or in which he shall have a substantial financial interest, but he shall not have the right to sub-let the use of the patent to any other person, corporation or company except upon approval of the University. IN WITNESS WHEREOF the said parties have hereunto attached their signatures and seals:

(SEAL) (SEAL) (SEAL) (SEAL) ,.,,....., (SEAL)